How to enable SEPA Direct Debit in Stripe?

How to Enable SEPA Direct Debit in Stripe: A Comprehensive Tutorial

Step 1: Create a Stripe Account

Before enabling SEPA Direct Debit, you need to have a Stripe account. If you don't have one yet, follow these steps:

• Go to stripe.com and click on "Start now" or "Create account"
• Enter your email address, create a password, and provide the required business information
• Complete the verification process by providing necessary documents as requested by Stripe
• Ensure your business is located in a SEPA-supported country (EU member states, UK, Switzerland, etc.)

Step 2: Enable SEPA Direct Debit in Your Stripe Dashboard

To activate SEPA Direct Debit as a payment method in your Stripe account:

• Log in to your Stripe Dashboard at dashboard.stripe.com
• Navigate to "Settings" > "Payment methods"
• Find "SEPA Direct Debit" in the list of payment methods
• Toggle the switch to enable it
• Complete any additional verification steps if prompted by Stripe

Step 3: Set Up Your Account Details

SEPA Direct Debit requires specific business information:

• In your Stripe Dashboard, go to "Settings" > "Business settings"
• Ensure your business name, address, and legal entity information are correct
• Verify that your bank account details are properly configured
• Make sure you've provided your IBAN (International Bank Account Number)
• Check that your business identifier (VAT ID or company registration number) is added

Step 4: Install Stripe Library in Your Project

To implement SEPA Direct Debit in your application, you'll need to install the Stripe library:

For Node.js:

npm install stripe

For PHP:

composer require stripe/stripe-php

For Python:

pip install stripe

For Ruby:

gem install stripe

Step 5: Initialize Stripe in Your Code

After installing the library, initialize it with your secret key:

For Node.js:

const stripe = require('stripe')('sk_test_your_secret_key');

For PHP:

require\_once 'vendor/autoload.php';
\Stripe\Stripe::setApiKey('sk_test_your_secret_key');

For Python:

import stripe
stripe.api_key = 'sk_test_your_secret\_key'

For Ruby:

require 'stripe'
Stripe.api_key = 'sk_test_your_secret\_key'

Step 6: Create a Payment Intent for SEPA Direct Debit

To collect a SEPA Direct Debit payment, create a PaymentIntent specifying the payment method as SEPA Direct Debit:

For Node.js:

const paymentIntent = await stripe.paymentIntents.create({
  amount: 1000, // Amount in cents
  currency: 'eur', // SEPA requires EUR
  payment_method_types: ['sepa\_debit'],
  metadata: {
    order\_id: '6735',
  }
});

For PHP:

$paymentIntent = \Stripe\PaymentIntent::create([
  'amount' => 1000, // Amount in cents
  'currency' => 'eur', // SEPA requires EUR
  'payment_method_types' => ['sepa\_debit'],
  'metadata' => [
    'order\_id' => '6735',
  ]
]);

Step 7: Implement SEPA Direct Debit Elements on the Frontend

Add the necessary HTML elements to your page:

  

    
  
  
  

    By providing your IBAN and confirming this payment, you are authorizing 
    [Your Company Name] and Stripe, our payment service provider, to send 
    instructions to your bank to debit your account. You are entitled to a 
    refund from your bank under the terms and conditions of your agreement 
    with your bank.
  
  
  Pay Now

Include Stripe.js in your page:

Step 8: Initialize Stripe Elements and Create the IBAN Element

const stripe = Stripe('pk_test_your_publishable_key');
const elements = stripe.elements();

// Create an IBAN Element
const ibanElement = elements.create('iban', {
  supportedCountries: ['SEPA'],
  placeholderCountry: 'DE',
  style: {
    base: {
      color: '#32325d',
      fontFamily: '"Helvetica Neue", Helvetica, sans-serif',
      fontSize: '16px',
      '::placeholder': {
        color: '#aab7c4'
      }
    },
    invalid: {
      color: '#fa755a'
    }
  }
});

// Mount the IBAN Element to the DOM
ibanElement.mount('#iban-element');

// Handle validation errors
ibanElement.on('change', (event) => {
  const displayError = document.getElementById('error-message');
  if (event.error) {
    displayError.textContent = event.error.message;
  } else {
    displayError.textContent = '';
  }
});

Step 9: Handle Form Submission and Create a Payment Method

const form = document.getElementById('payment-form');

form.addEventListener('submit', async (event) => {
  event.preventDefault();
  
  const nameInput = document.getElementById('name');
  const email = document.getElementById('email').value;
  
  // Create a PaymentMethod for sepa\_debit
  const result = await stripe.createPaymentMethod({
    type: 'sepa\_debit',
    sepa\_debit: ibanElement,
    billing\_details: {
      name: nameInput.value,
      email: email
    }
  });
  
  if (result.error) {
    // Show error to your customer
    const errorElement = document.getElementById('error-message');
    errorElement.textContent = result.error.message;
  } else {
    // Send PaymentMethod ID to your server
    const paymentMethodId = result.paymentMethod.id;
    confirmPayment(paymentMethodId);
  }
});

Step 10: Confirm the Payment on Your Server

Create a server endpoint to confirm the payment:

For Node.js:

app.post('/confirm-payment', async (req, res) => {
  const { paymentMethodId, paymentIntentId } = req.body;
  
  try {
    const paymentIntent = await stripe.paymentIntents.confirm(paymentIntentId, {
      payment\_method: paymentMethodId
    });
    
    res.send({ success: true, paymentIntent });
  } catch (error) {
    res.send({ error: error.message });
  }
});

And call it from your frontend:

async function confirmPayment(paymentMethodId) {
  const response = await fetch('/confirm-payment', {
    method: 'POST',
    headers: {
      'Content-Type': 'application/json'
    },
    body: JSON.stringify({
      paymentMethodId: paymentMethodId,
      paymentIntentId: 'id; ?>' // Pass from your server
    })
  });
  
  const result = await response.json();
  
  if (result.error) {
    // Show error to your customer
    const errorElement = document.getElementById('error-message');
    errorElement.textContent = result.error;
  } else {
    // Success! Show confirmation to your customer
    document.getElementById('payment-form').style.display = 'none';
    document.getElementById('success-message').style.display = 'block';
  }
}

Step 11: Handle SEPA Direct Debit Mandate

SEPA Direct Debit requires a mandate from the customer. The mandate is automatically generated by Stripe, but you should display it to the customer:

// After successful payment method creation
const mandateAcceptance = document.getElementById('mandate-acceptance');
mandateAcceptance.innerHTML = \`
  By providing your payment information and confirming this payment, you authorize 
  (A) ${result.paymentMethod.sepa_debit.mandate_reference} and Stripe, our payment service provider, 
  to send instructions to your bank to debit your account and (B) your bank to debit your account in 
  accordance with those instructions. As part of your rights, you are entitled to a refund from your 
  bank under the terms and conditions of your agreement with your bank. A refund must be claimed within 
  8 weeks starting from the date on which your account was debited.
\`;

Step 12: Set Up Webhook Handling for SEPA Direct Debit Events

SEPA Direct Debit payments are not instant and require webhook handling:

// Node.js webhook handler example
app.post('/webhook', express.raw({type: 'application/json'}), async (req, res) => {
  const sig = req.headers['stripe-signature'];
  let event;

  try {
    event = stripe.webhooks.constructEvent(req.body, sig, 'whsec_your_webhook\_secret');
  } catch (err) {
    return res.status(400).send(`Webhook Error: ${err.message}`);
  }

  // Handle specific SEPA Direct Debit events
  switch (event.type) {
    case 'payment\_intent.succeeded':
      const paymentIntent = event.data.object;
      console.log('PaymentIntent succeeded:', paymentIntent.id);
      // Update your database, fulfill order, etc.
      break;
      
    case 'payment_intent.payment_failed':
      const failedPayment = event.data.object;
      console.log('Payment failed:', failedPayment.id, failedPayment.last_payment_error?.message);
      // Notify customer, update database, etc.
      break;
      
    case 'charge.succeeded':
      const charge = event.data.object;
      console.log('Charge succeeded:', charge.id);
      break;
      
    default:
      console.log(`Unhandled event type ${event.type}`);
  }

  res.json({received: true});
});

Step 13: Test SEPA Direct Debit Integration

Before going live, test your integration using Stripe's test mode:

• Use test IBAN numbers like DE89370400440532013000
• Test the full payment flow using Stripe's test clock feature to simulate the passing of time
• Verify webhook delivery using the Stripe CLI or webhook testing tools
• Test both successful payments and failures using different test IBANs

Step 14: Go Live with Your SEPA Direct Debit Integration

When you're ready to accept real payments:

• Switch your API keys from test to live mode in your Stripe Dashboard
• Update your code to use the live API keys
• Update your webhook endpoint to use the live webhook secret
• Perform a real test transaction with a small amount to ensure everything works properly
• Monitor your Stripe Dashboard for incoming payments and potential issues

Step 15: Implement Additional Features (Optional)

Enhance your SEPA Direct Debit integration with these additional features:

• Set up recurring payments using Stripe Subscriptions
• Implement automatic retry logic for failed payments
• Create automated email notifications for payment status changes
• Add a customer portal for managing SEPA mandates and payment methods
• Implement fraud detection measures specific to SEPA payments

// Example of creating a subscription with SEPA Direct Debit
const subscription = await stripe.subscriptions.create({
  customer: 'cus_customer_id',
  items: [
    { price: 'price_monthly_subscription' },
  ],
  payment\_settings: {
    payment_method_types: ['sepa\_debit'],
    save_default_payment_method: 'on_subscription'
  },
  expand: ['latest_invoice.payment_intent']
});